Markets & Finance

Prudential: 'Sell' Dollar General

April 29, 2001

Prudential downgraded Dollar General (DG) to sell from hold.

Analyst Wayne Hood says he downgraded in light of the company's announcement that it will delay its 10-K filing. He says there's been some talk about fraudulent activity, and says the company plans to restate the last three years' earnings. He could see the stock down as low as $13-$15.

Hood would sell Dollar General into weakness, and recommends a swap into Family Dollar (FD), which he rates strong buy. Even if Dollar General comes back, Hood believes it will be dead money.